Half Year 2026 CapitaLand Ascendas REIT Earnings Call Transcript
Key Points
- Distributable income increased 8.6% year-on-year to S$359.4 million, with DPU stable at 7.482 cents despite a larger unit base.
- Portfolio occupancy remains resilient at 90.3% excluding newly completed properties, with positive rental reversions of 5% for H1 2026 and 5.2% in Q2.
- Gearing improved to 39.7% from 42% following a well-oversubscribed equity fundraising, strengthening the balance sheet.
- Executed on portfolio rejuvenation with S$1.1 billion of acquisitions in H1 2026, including logistics and data center assets, and a S$200 million divestment at a 32% premium to valuation.
- Rental reversion guidance raised to high single-digit, supported by strong lease negotiations and new developments like 27 IBP and Genio showing positive leasing momentum.
- Portfolio occupancy declined to 89.1% due to the addition of new unleased properties (Somerville Logistics Centre and 27 IBP), with 27 IBP only 19% committed.
- DPU slightly decreased by 0.6% half-on-half due to the enlarged unit base from equity fundraising.
- US portfolio occupancy remains low at 85.9% (excluding new property), reflecting ongoing leasing challenges in the region.
- Increased credit loss provisions from S$1 million to S$3 million, primarily in UK/Europe logistics, indicating potential tenant stress.
- Uncertainty around the UK data center redevelopment due to delays in power grid confirmation, potentially impacting future growth plans.
I'm Johanna from the Investor Relations team. Thank you for joining us today in person at Capital Tower and remotely via Zoom. Please note that this briefing is recorded and will be made available on our website. We will start shortly with a presentation by Director of Investor Relations, followed by questions and answers with our management team.
I'm pleased to introduce the panel this evening. Mr. William Tay, our Chief Executive Officer. On his right, Ms. Koo Lee Si, Chief Executive Officer. Mr. James Goh, Head of Portfolio Management for Singapore. Finally, Ms. Serene Ong, Head of Investment and Portfolio Management International.
If you have any questions, please raise your hands and the microphone will be passed to you. Please try to keep to two questions each time and if you would like to supplement with more, we will circle back to you. For those online, you may post your questions on the chat box.
With that, I'll hand over the time now through the highlights of the briefing.
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